Self‑Assessment Blurs, Taxpayers Administer Others’ Taxes

On 26 October 2025, Indonesia’s tax authority noted that the self‑assessment principle has become blurred. Taxpayers are now expected not only to calculate and report their own tax but also to handle other parties’ tax administration.

Traditionally, self‑assessment means a taxpayer calculates, pays, and reports its own liability. With the expanding scope of withholding and collection under income tax, taxpayers are additionally required to collect, remit, and administer tax on behalf of third parties.

This shift increases the administrative burden on taxpayers and signals a more active fiscal role for them. The change may affect compliance levels and cost structures for businesses and individuals.